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ENTREPRENEURIAL FINANCE LAB
EXPANDING ACCESS TO DIGITAL FINANCE Alan Martinez, Director of Innovative Solutions [email protected]
ENTREPRENEURIAL FINANCE LAB
EXPANDING ACCESS TO DIGITAL FINANCE Alan Martinez, Director of Innovative Solutions [email protected]
© 2016, EFL Global. All rights reserved. 2 2
New Trends
Mobile User Expectations
Big Data FinTechs
© 2016, EFL Global. All rights reserved. 3 3
Emerging digital lenders
”Born Digital” Lenders Traditional FIs going digital
© 2016, EFL Global. All rights reserved. 4
Rejected w/o
review
Don’t apply
Insufficient collateral, documents
Approved Potential
Problem
© 2016, EFL Global. All rights reserved. 5
CDR
Journey
Customer
Acquisition
CREDIT SCORE
337
Score Delivered
Digital Channel
Mobile / PC / Tablet
FI Screening
Data Analytics and
Scoring Strategy
Application Psycho-
metrics
GIS
Bank Account
Aggregation
Traditional / Digital
Underwriting
The Best
Credit Decision
High volume
Online
Social
Sales History
© 2016, EFL Global. All rights reserved. 6
Solution
Mobile Relationship Conversational
© 2016, EFL Global. All rights reserved. 7 © 2016 EFL Global Ltd. All Rights Reserved
ALTERNATIVE DATA
EFL’s Alternative Data Score analyzes a consumer’s or entrepreneur’s deep aspects highly related to their success and willingness to pay
ATTITUDES & PSYCHOLOGICAL
PROFILE
ETHICS & HONESTY
FLUID INTELLIGENCE
BUSINESS SKILLS
WILLINGNESS TO PAY ABILITY TO PAY
© 2016, EFL Global. All rights reserved. 8
Solution – Digital Finance
Mobile Conversational
© 2016, EFL Global. All rights reserved. 9
Product
If you were to take a loan and NEVER REPAY IT, how much respect,
admiration and influence would you have compared with others ?
© 2016, EFL Global. All rights reserved. 10 © 2016 EFL Global Ltd. All Rights Reserved
Credit Score Represents a score that can be used to determine the credit decision. Using a cutoff, the score determines who to accept or reject.
CREDIT SCORE
337
Acceptance Criteria
Accept applicants with scores above optimal cut-off.
Risk-Based Pricing
Align interest rates with credit default risk.
Fast Track Approval
Shorten approval process for low-risk clients.
Loan Size Determination
Allow higher loan sizes for low-risk clients.
Use Case
© 2016, EFL Global. All rights reserved. 11 11
EFL expands lending to the other 80% of consumer and enterprise lending
markets . . .
Use Case - India
Leverages alternative data and technology to increase efficiency and
productivity
Works with data-driven CRO and Senior Management to make reliable & timely risk management decisions.
© 2016, EFL Global. All rights reserved. 12
Results Predictive power across 27 different geographies and more than 30 partners
Financial Institution 1 Financial Institution 2
Financial Institution 3 Financial Institution 4
4%5%4%
11%
0%
2%
4%
6%
8%
10%
12%
5%
~3x
Def
ault
Rat
e
3%
11%13%
8%8%
0%
5%
10%
15%
~4x
Def
aul R
ate
5%
9%7%
12%
17%
0%
5%
10%
15%
20%
~4x
Def
ault
Rat
e
5%
3%3%
2%
0%
2%
4%
6%
~2x
Def
ault
Rat
e
Worst Score
Best score
Worst Score
Best Score
Worst Score
Best Score
Worst Score
Best Score
4%
© 2016, EFL Global. All rights reserved. 13 13
675,680 credit assessments
Traction
+$1 Billion loan decisions
27 countries
Psychometrics
Entrepreneur Consumer
Mobile / CDR
Social
2010 2011 2012 2013 2014 2015 2016
© 2016, EFL Global. All rights reserved. 14 © 2016 EFL Global Ltd. All Rights Reserved
INDONESIA MEXICO INDIA
SOUTH AFRICA MEXICO INDIA
KENYA
KENYA PERU
MEXICO ECUADOR ETHIOPIA
INDIA
MEXICO HAITI
SPAIN BRAZIL PERU
ZIMBABWE
ECUADOR
MEXICO
COSTA RICA
GUATEMALA
GHANA
Partners
Global Partnerships
© 2016, EFL Global. All rights reserved. 15
Partnering with EFL
Increase Approvals
Transformational
Efficiency
Control Risk Proven
Alternative Data
Compete in a Digital World
